The strategy: TikTok Shop has quickly become a major ecommerce player in the US, and now it is making a concerted effort to expand both the number and range of brands selling on the platform.

• To do that, TikTok is launching an initiative called Project Horizon, which involves working with roughly 100 ecommerce agencies, each incentivized to recruit dozens of brands generating at least $10 million in annual sales on platforms like Amazon and Shopify, per The Information. TikTok’s rationale is that attracting brands with proven track records can help reposition TikTok Shop away from perceptions as a Temu-like destination for cheap goods and toward a place where consumers buy the same products they purchase on Amazon or Walmart.
• If an agency recruits at least 30 brands and those brands collectively generate $50 million or more in sales by year-end, the agency will receive a share of the resulting sales revenues.

The context: The threat of a US ban is now largely in the rearview mirror, with TikTok’s sale of its US data security arm to a joint venture scheduled to close on January 22.

• With that uncertainty easing, TikTok is focused on repositioning TikTok Shop from a awareness-building channel to a meaningful sales driver.
• The company is pitching brands on the platform’s revenue-growing momentum, including a 50% jump in the number of shoppers between Black Friday and Cyber Monday, when TikTok Shop sales reached $500 million.
• Even before news of Project Horizon’s launch rolled out, we expected TikTok Shop’s US ecommerce sales to soar 48% YoY this year to $23.41 billion. At that level, the social platform would exceed the US ecommerce sales of Target, Costco, Best Buy, and Kroger—a notable feat considering TikTok Shop only made its official debut in September 2023.

The implications for brands: While TikTok Shop offers an enticing opportunity for brands, it differs fundamentally from the online marketplaces operated by Amazon and Walmart. To thrive, brands need to adjust their strategy in several ways, including:

• Embrace experimentation over control. Success on TikTok requires constant testing, leaning into creator-led and imperfect content, and a willingness to let virality emerge organically rather than trying to overengineer it.
• Design for discovery, not demand. Unlike search-based marketplaces, TikTok introduces products to consumers who weren’t actively shopping, making entertainment, storytelling, and cultural relevance essential.
• Plan for volatility in inventory and demand. Viral moments can trigger sudden sellouts, requiring flexible supply chains and careful product selection.
• Lead with content, not catalogs. TikTok Shop rewards brands that treat content as the primary conversion driver, rather than relying on broad assortments or heavily optimized product listings.
• Listen—and react—in real time. TikTok compresses the feedback loop, giving brands immediate insight into consumer preferences, product gaps, and messaging missteps that can shape everything from marketing to product development.

The Venn diagram between brands that can thrive on Amazon and TikTok Shop overlaps significantly, particularly among those willing to move faster, loosen their grip on control, and treat commerce as a social experience rather than a purely transactional one.